How to protect yourself from debt collectors, know your rights, and explore your options

Getting a call from a debt collector can be overwhelming. The tone is often urgent, the timing stressful, and the pressure real – especially if you’re already struggling financially.

But what many Canadians don’t realize is that debt collectors must follow strict rules. You have rights and understanding them can change how you respond in the moment and for any calls after. 

Why debt collectors are contacting you

If a debt collector is reaching out, it usually means your account has been:

• Handled internally by your creditor for a period of time, then
• Passed along or sold to a collection agency after missed payments

At that point, the collection agency becomes your pain point of contact. Their job is to recover the debt, but how they do it is regulated by law.

What debt collectors are allowed to do

Debt collectors can contact you to discuss repayment, but within limits. For example, they can:

• Call, email, or send letters about the debt
• Explain what you owe and who you owe it to
• Attempt to negotiate a repayment arrangement

They can also report legitimate debts to credit bureaus or pursue legal action but only through proper legal channels.

What debt collectors can’t do

There’s a clear line between legal collection activity and harassment. Collectors are not allowed to:

• Harass or threaten you

This includes abusive language, intimidation, or repeated calls meant to pressure you

• Call at unreasonable times

Typically, they cannot contact you before 7:00 a.m. or after 9:00 p.m., and restrictions apply on Sundays and holidays

• Discuss your debt with others

They cannot tell your employer, family, or friends about your debt (except in limited circumstances, like a co-signer)

• Mislead you or make false claims

They cannot exaggerate consequences or threaten actions they can’t legally take

• Add unauthorized fees

They can’t increase what you owe beyond permitted charges (such as certain legal costs)

Yor rights when dealing with debt collectors

Beyond knowing wha debt collectors can and cannot do, it’s important to know what you can do.

You have the right to:

1. Get the details

Ask for the full details of the debt, including:

• The amount owing
• The original creditor
• When the debt began

You can also request written confirmation before you take any action.

2. Take your time

You’re not required to make a decision during a phone call. In fact, it’s often best to:

• Review your records
• Confirm the debt is accurate
• Understand your options before agreeing to anything

3. Control how you’re contacts

You can request that a collector:

• Communicate with you only in writing, or
• Contact your legal advisor instead

This must typically be done in writing.

4. Dispute or verify the debt

If something doesn’t seem right, you can:

• Ask for proof of the debt
• Dispute incorrect information

Collectors must provide clarity before continuing their efforts.

What to do when the calls start

If you’re getting collection calls, a few steps you can take to regain control are:

• Stay calm and gather information

Ask for names, company details, and documentation

• Keep records of all contact

Dates, times, and what was said

• Don’t agree to payments right away

Make sure the debt is accurate and manageable

• Avoid ignoring the situation completely

Doing nothing can limit your options over time

When to get extra support

If your debt feels unimaginable, you’re not alone and you don’t have to figure it out on your own.

There are many structured solutions available in Canada from negotiating your repayments, debt consolidation, Consumer Proposals, or Bankruptcy for more severe situations.

Working closely with a Licensed Insolvency Trustee can help you better understand your options, stop collection calls, and create a plan to move forward with confidence.